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The Compound Effect

We’ve all heard about the power of compound interest in making our money grow. In fact compounding is a powerful concept in everything, yes everything. Everything we do adds to the next thing we do, either taking us towards our goals or away from our goals. Life is always compounding. In other words, you can’t go to the gym one time and expect to look like Arnold Schwarzenegger.

I imagine most people don’t want to look like Arnold anyway, there is such a thing as to much muscle. But to get to that point requires repetition, compounding, consistent action. The same applies to our investments, savings, budgeting, health, careers, business and our relationships. All things in life are subject to the Compound Effect. Even the smallest things we do or don’t do can make a huge difference over time; for example eating less French Fries, will, over time make a huge difference. Walking an extra five minutes makes a huge difference over your life time.

As the old saying goes, “Life is not a 100 yard dash, it is a marathon.”, and everything compounds over that marathon. The sooner you start to use the Compound Effect the better your life will become. And using it is easy, just list things you’re doing that do not serve you, do not bring you closer to your goals, and try to do them a little less. For example, drink one less can of soda a day. Now list good habits you have, or ones you plan to start, and pick one small way you can work on them.


Remember the Compound Effect is always working and always moving you towards or away from your goals. Celebrate your small victories and don’t let your small failures pile up. It isn’t just about money; it is about your life.


~ Dennis

Find A Way


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